Heritage Financial Corporation

Heritage Financial Corporation

HFWAยทNASDAQ

$26.69

-2.7%
Financial ServicesBanks - Regional

Heritage Financial Corporation operates as the bank holding company for Heritage Bank that provides various financial services to small and medium sized businesses and individuals in the United States. The company accepts various deposit products, such as noninterest demand deposits, interest bearing demand deposits, money market accounts, savings accounts, personal checking accounts, and certificates of deposit. Its loan portfolio includes commercial and industrial loans, owner-occupied and non-owner occupied commercial real estate loans, one-to-four family residential loans, real estate construction and land development loans, consumer loans, commercial business loans, lines of credit, term equipment financing, and term real estate loans, as well as commercial business loans to a range of businesses in industries that include real estate and rental and leasing, healthcare, accommodation and food services, retail trade, and construction. The company also originates loans that are guaranteed by the U.S. Small Business Administration; and offers trust services, as well as objective advice. As of January 27, 2022, it had a network of 49 banking offices located in Washington and Oregon. The company was formerly known as Heritage Financial Corporation, M.H.C. and changed its name to Heritage Financial Corporation in 1998. Heritage Financial Corporation was founded in 1927 and is headquartered in Olympia, Washington.

At a Glance

Live Snapshot
Market Cap$907.39M
EPS1.9900
P/E Ratio13.41
Earnings Date07/23/2026
Heritage Financial Corporation

Heritage Financial Corporation Fair Value Envelope

HFWA ยท NASDAQ

Our analysis suggests that HFWA has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $26.69, this represents a potential HIDDEN relative to our calculated worth for Heritage Financial Corporation.

Intrinsic Value
Current Price: $26.69

Owner Earnings Valuation Tool

Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation

Historical Financial Data

Base year metrics used for projections

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Projection Settings

Forecast period and terminal assumptions

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DCF Valuation Summary

Calculation flow from present value to intrinsic value per share

Present Value$26.9B
+ Cash & Equivalents$52.6M
Firm Value$27.0B
- Debt$42.4M
Equity Value$26.9B
/ Shares Outstanding33,954,496B
DCF Value$793
UNDERVALUED BY 2869%

Owner Earnings Projections

Operating Cash Flow - Maintenance CapEx = Owner Earnings

Metric
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Operating Cash Flow
$133.1M
$186.8M
$262.3M
$368.2M
$516.8M
$725.5M
$1.0B
$1.4B
$2.0B
$2.8B
Maintenance CapEx
-$2.6M
-$3.6M
-$5.1M
-$7.1M
-$10.0M
-$14.0M
-$19.7M
-$27.6M
-$38.8M
-$54.4M
Owner Earnings
$130.5M
$183.2M
$257.2M
$361.1M
$506.9M
$711.5M
$998.8M
$1.4B
$2.0B
$2.8B
Discount Factor
0.926
0.857
0.794
0.735
0.681
0.630
0.583
0.540
0.500
0.463
Present Value
$120.9M
$157.1M
$204.2M
$265.4M
$345.0M
$448.4M
$582.8M
$757.5M
$984.6M
$1.3B
Terminal Value represents 80.9% of Enterprise Value